Priceline, Travelocity and Cingular Settle Over Adware Charges

Priceline.com, Travelocity.com and Cingular Wireless have settled over charges that they used secret adware Internet software programs as marketing tools, New York Attorney General Andrew Cuomo said on Monday.

This settlement marks the first time the advertisers have been held responsible for how their ads were delivered. “Advertisers can no longer insulate themselves from liability by turning a blind eye to how their advertisements are delivered, or by placing ads through intermediaries, such as media buyers,” a statement from the New York Attorney General’s Office said. “The settlement calls for Priceline.com, Travelocity and Cingular, the wireless unit of AT&T, to pay New York $35,000, $30,000 and $35,000, respectively, to cover penalties and investigatory costs.” Is $35,000 enough to make a company think twice? —MEGHANN MARCO

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I like analogies. I’ll propose this one. Three average neighbors on your street toss a baseball through your window. Mathematically (if I’m working out revenue figures right), they are now responsible for paying $1 each for the damage (paid to the cops through the city treasury, not to you), and they don’t have to apologize to anyone or admit responsibility. Yep, that’ll teach ‘em.